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Societe Generale SA GLE

Morningstar Rating
€27.38 +0.30 (1.11%)
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Company Report

Societe Generale Earnings: Aggressive Outlook, but Performance Still Disappoints

No-moat Societe Generale reported a 22% lower group net income for first-quarter 2024 compared with the respective period of 2023. In addition, a significant increase in the cost of risk amounted to EUR 400 million or 27 basis points, which is in line with the group’s guidance for 2024. However, this amount is slightly higher than the average cost of risk in 2022-23. The cost/income ratio of 75% appeared to be slightly lower than in the previous quarter. Operating costs were hit by transformational charges, which should result in a lower efficiency ratio of 71% for 2024 as guided by an ambitious 60% in 2026, which we do not see as feasible yet. Societe Generale needs to report higher efficiencies to prove it can reach these goals. An additional contribution to decreased net income came from a EUR 84 million loss after the disposal of Societe Generale’s Moroccan business, which was announced earlier in first-quarter 2024. We keep our fair value estimate of EUR 29.30/share, which we updated recently.

Price vs Fair Value

GLE is trading at a 398% premium.
Price
€27.07
Fair Value
€75.40
Uncertainty
Very High
1-Star Price
€57.21
5-Star Price
€67.49
Economic Moat
Ccnv
Capital Allocation
Pjpmq

Bulls Say, Bears Say

Bulls

SocGen has bolstered its capital materially.

Bears

Socgen has not outearned its cost of capital for the better part of a decade.

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News

Trading Information

Previous Close Price
€27.08
Day Range
€26.9427.47
52-Week Range
€20.2327.95
Bid/Ask
€27.36 / €27.47
Market Cap
€21.88 Bil
Volume/Avg
2.0 Mil / 3.4 Mil

Key Statistics

Price/Earnings (Normalized)
7.31
Price/Sales
0.49
Dividend Yield (Trailing)
3.32%
Dividend Yield (Forward)
3.32%
Total Yield
21.48%

Company Profile

Founded in 1884, Societe Generale is one of France's major banks. It was historically viewed as primarily a corporate and investment bank, but it has meaningful retail banking operations in France, Eastern Europe, and North Africa.
Sector
Financial Services
Industry
Banks - Regional
Stock Style Box
Large Value
Total Number of Employees
126,000

Competitors

Valuation

Metric
GLE
ACA
BNP
Price/Earnings (Normalized)
7.316.7110.09
Price/Book Value
0.320.620.61
Price/Sales
0.491.921.28
Price/Cash Flow
1.391.813.92
Price/Earnings
GLE
ACA
BNP

Financial Strength

Metric
GLE
ACA
BNP
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
GLE
ACA
BNP
Return on Assets (Normalized)
0.29%0.31%0.32%
Return on Equity (Normalized)
6.69%8.22%7.33%
Return on Invested Capital (Normalized)
Return on Assets
GLE
ACA
BNP
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Banks - Regional Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
BNPQY
BNP Paribas ADRLrlqmqjNyfhd$83.3 Bil
ISNPY
Intesa Sanpaolo ADRLglfgwpzwLzdz$71.5 Bil
PNC
PNC Financial Services Group IncHrnfqfmmZxgsb$61.4 Bil
USB
U.S. BancorpTltynsfzcMcbgl$60.9 Bil
ITUB
Itau Unibanco Holding SA ADRSpnhbmmtQvkk$55.5 Bil
TFC
Truist Financial CorpQwnzhwwFfywct$50.5 Bil
MFG
Mizuho Financial Group Inc ADRXffscsynFbbvp$50.5 Bil
LYG
Lloyds Banking Group PLC ADRKywdwbbjxZttwsvk$43.9 Bil
NWG
NatWest Group PLC ADRCmkvGhf$34.5 Bil
DB
Deutsche Bank AGQhvfJsdz$32.9 Bil

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